In a commendable achievement, India's smartphone industry, comprising handset and chipset manufacturers, has made strides in 2023. They managed to reduce the price of 5G smartphones to as low as $130.71, thus promoting their widespread adoption. Noteworthy were launches of chipsets infused with generative artificial intelligence and the implementation of hardware upgrades. Additionally, the quarter ending in September saw the shipping of half a million foldable units, further marking this as a significant milestone. There was also a noticeable 'premiumisation' trend that threw Apple into the spotlight, making waves in the news.

As they edge towards the end of 2023, handset vendors are confident that 5G smartphones in two specific price bands - under $130.71 and $130.71 to $196.07 - may be the driving force for the industry which is under duress. Despite robust festive sales, expected shipments for the industry lay between 140-150 million units, instead of the 144-152 million units shipped in 2022. Numerous companies, including homegrown handset maker Lava, Xiaomi, and sub-brand Poco, Samsung, HMD Global, Realme, have released their own affordably priced 5G smartphones. The consensus is that financing schemes could aid a larger segment of the population in adopting 5G.

Recently launched Xiaomi Redmi 13C, priced at $130.6, serves as an example. Xiaomi's financing scheme makes it possible to purchase the base 4GB RAM variant of the Redmi 13C  for a mere $104.56. Additionally, the Poco M6 Pro 5G is available at a very low price of $143.53. Smartphone brands, however, anticipate a rise in the prices of the highly economical 5G phones due to inflation and decreasing disposable income among the lower socio-economic strata. This indicates the potential decline of the popularity of this price band next year.

As explained by Himanshu Tandon, the Country Head of Poco India, the promotional potential for 5G smartphones in the under $130.71 segment is immense. The change from a 4G to a 5G product lineup is apparent in the market. HMD Global’s VP of India and APAC, Ravi Kunwar, also shares this belief that the under $130.71 smartphone segment, although shrinking, still holds relevance. He sees a larger potential in the price points of above $130.71 ($130.71 to $196.07 and $196.07 to . If more brands step up to offer 5G below $130.71, it will determine the overall momentum of the industry.

According to the International Data Corporation, 5G smartphone shipments in the third quarter of 2023 reached an impressive 58% share with 25 units in India. By the end of the year, an estimated 55% of shipments are expected to be 5G-based, brought on the success of budget-friendly models in the second half of the year. The average selling price of 5G devices dropped to $469.54 in the September quarter, down by 9% from the previous year. Samsung led the Indian 5G smartphone market, garnering a 23% market share, with Vivo following at 16%.

In another notable achievement, foldable phone shipments reached a record half a million units in the third quarter of 2023, with Samsung leading the field with a 66% share. New releases from Motorola at lower prices decreased the average selling point of foldables to $1572.71, down from $1734.72 the previous year. However, market experts do point out that while we should expect more foldable phones, the opportunity might not grow much further. As Faisal Kawoosa, Chief Analyst at Techarc, puts it, there doesn't seem to be a compelling reason for a 5G smartphone under $130.71 at present.

Qualcomm and MediaTek launched their chipsets with 5G, new Wi-Fi tech support, and Generative AI capabilities in 2023. Such on-device GenAI can enhance personalization, hasten processing of tasks, improve app latency, and safeguard user privacy and personal information as all the processing happens on the device itself, rather than on an external cloud. Despite this being infant stages for on-device GenAI, experts believe that it would require Original Equipment Manufacturers to equip smartphones with specialized chips and software enhancements for groundbreaking applications of this technology, at least in the short to medium term.